2002 (9) TMI 878 - SC - Central Excise

Summary

Issues: Interpretation of Rule 221 and Rule 3 of the Central Excise Rules, 1944

In this judgment, the Supreme Court considered the interpretation of Rule 221 and Rule 3 of the Central Excise Rules, 1944. The primary issue was to determine the liability of the Managing Director of a corporation under Rule 221, which pertains to the responsibility of a corporate body for making declarations and obtaining registration certificates. The Court analyzed whether the obligation under Rule 221 is independent of the provisions under Rule 3, which deal with the agent of the owner of goods being deemed the owner for certain purposes when authorized by the Commissioner. The appellant argued that the Managing Director should not be held liable based on Rule 221, but the Court disagreed, emphasizing that Rule 221 imposes a strict obligation on the declarant, which continues until a specific authorization is provided under Rule 3. The Court highlighted the importance of reading Rule 221 in conjunction with other relevant rules, such as Rule 225, to ensure the statutory efficacy of the law. Ultimately, the Court dismissed the appeals, concluding that the liability under Rule 221 cannot be absolved based on the operation of Rule 3.